Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
UnitedHealth Group Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Item | Description | The company |
|---|---|---|
| EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | UnitedHealth Group Inc. EBITDA increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Enterprise Value to EBITDA Ratio, Current
UnitedHealth Group Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 525,429) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 28,076) |
| Valuation Ratio | |
| EV/EBITDA | 18.71 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 21.62 |
| Cigna Group | 11.83 |
| CVS Health Corp. | 10.22 |
| Elevance Health Inc. | 9.05 |
| Intuitive Surgical Inc. | 54.69 |
| Medtronic PLC | 15.80 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 16.77 |
| EV/EBITDA, Industry | |
| Health Care | 20.04 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
UnitedHealth Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 481,999) | 494,200) | 481,109) | 470,898) | 338,798) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 28,076) | 36,330) | 31,835) | 27,073) | 25,296) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 17.17 | 13.60 | 15.11 | 17.39 | 13.39 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 22.28 | 19.49 | 15.85 | 17.42 | 25.99 | |
| Cigna Group | 11.20 | 12.11 | 8.88 | 9.06 | 6.31 | |
| CVS Health Corp. | 9.86 | 8.03 | 12.42 | 10.41 | 8.56 | |
| Elevance Health Inc. | 8.15 | 10.24 | 10.26 | 10.05 | 7.57 | |
| Intuitive Surgical Inc. | 63.79 | 53.82 | 41.52 | 44.54 | 59.12 | |
| Medtronic PLC | 14.63 | 15.28 | 14.99 | 24.41 | 17.92 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 16.32 | 13.82 | 13.98 | 15.40 | 13.12 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 19.95 | 18.98 | 13.71 | 13.87 | 16.50 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 481,999 ÷ 28,076 = 17.17
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | UnitedHealth Group Inc. EV/EBITDA ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |